Business welcomes Nicola Sturgeon decision to 'reset the plan' for indyref2

Scottish Chambers of Commerce chief executive Liz Cameron said the First Minister's new plan will allow politicians of all parties to focus on 'two clear objectives' but pro-union Scottish Business UK's Robert Kilgour voices concern the 'engine is still running'

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The Scottish Chambers of Commerce (SCC) welcomed the news. Chief executive Liz Cameron said the First Minister's new plan will allow politicians of all parties to focus on "two clear objectives" - ensuring the best possible deal from Brexit, and the delivery of improvements to skills, taxation, infrastructure and connectivity in Scotland.

"We support the First Minister's call for the Scottish Government to play a full and integrated role in the Brexit negotiations, and we also want to see wider Scottish interests, including our business community, represented in this," Cameron said.

"We don't yet know what Brexit will look like, and our understanding of the terms of the final agreement will define the business and public response.

"At that point, there will no doubt be a time of public reflection in Scotland, and indeed throughout the UK, to consider the way forward."

Robert Kilgour of Scottish Business UK, the pro-union business campaign, said the decision to park the prospect of another independence referendum was a "relief", but there remains concern "that the engine is very much being kept running".

"Business leaders across all sectors in Scotland need a degree of stability to help attract new business and investment," he added. "So today's decision will help in the short term, but the prospect of a return to a push for Indyref2 as soon as next year will cause wide-spread concern."

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And she asked why she did not just take Indyref2 off the table for the rest of this Parliament.

Scottish Labour leader Kezia Dugdale said: "The truth is the threat of an unwanted second independence referendum is dead and this didn't happen because Nicola Sturgeon wanted it to, the people of Scotland have taken that decision for her.

"The first minister is digging her heels in, putting her fingers in her ears and pressing on regardless. She is just not listening."

Scottish Liberal Democrat leader Willie Rennie added: "The people spoke loud and clear at the general election that they did not want another divisive independence referendum. She should listen."

Earlier Theresa May urged Ms Sturgeon to take the possibility of a second referendum off the table completely.

But the First Minister insisted she continued to "strongly believe" that the country should have a choice on its future at the end of the Brexit process.

She added she had repeatedly been told during "hundreds" of conversations since the election that people were worried about the uncertainty caused by Brexit, and were tired of making big political decisions.

She added: "They want greater clarity about Brexit to emerge first, and they want to be able to measure that up against clarity about the options Scotland would have for securing a different relationship with Europe.

"They want the Scottish Government to focus as hard as we can on securing the best possible outcome for Scotland."

Ms Sturgeon argued that the general election and the "weakness" of the UK Government had "reopened the possibility, however narrow, of averting a hard Brexit and maintaining membership of the single market".

She added: "I have a duty to listen to those views, and I intend to do so".